If you’re looking for retirement and medical benefits, it’s better to work for larger companies or state and local entities, according to a recent Bureau of Labor Statistics report covering data through March 2013.
While that’s no surprise, it can be a problem for younger workers and those returning to the workforce as smaller companies tend to create more jobs and are less likely to outsource overseas. Only 45% of workers in firms with 1-49 employees have access to retirement benefits, compared to 87% for firms with more than 500 employees. Overall, 64% of workers in private companies have access to retirement benefits, compared to 89% of state and local workers.
But before retirement envy sets in, consider that benefits for state and local workers are dwindling as new workers are now pushed into 401(k)-like plans. Future retirement benefits for current employees are also in doubt as many government entities may not be able to fulfill their lofty promises. The industry is closely watching the Stockton, Calif. bankruptcy and the recent Detroit filing, both of which threaten to undermine the retirement security of their workers.
